mission statements of socially responsible firms… · · 2017-09-30mission statements of...

ABSTRACTA well-designed mission statement is essential for for-mulating, implementing and evaluating business strate-gy. However the role of the mission statement in thestrategic management of business firms has not beensufficiently highlighted in the research literature. Theimportance of mission statements to the effective strate-gic management of business organizations is well doc-umented in the literature but it is quite surprising thatminimal attention has been paid to the role of missionstatements of socially responsible organizations. Thispaper attempts to fill this gap in the literature. It focus-es on the socially responsible firms, which are listed inthe Business Ethics' 100 Best Corporate Citizens Index,by selecting the firms whose mission statements couldbe seen clearly from their corporate websites. The mis-sion statements are then analyzed to determine theircomponents and the differences between the firms.

Keywords: Mission Statement, social responsibility,content analysis

INTRODUCTIONMission statements are today seen as an importantbusiness tool, combining a statement of purpose forthe organization with some form of aspirational visionfor its future. Undoubtedly, to be effective they doneed genuinely to convey the vision of the organiza-tion to the organization.

Definitions and Components ofMission StatementsA mission statement may be a single brief (one or twosentences) statement, or a hierarchy of statements.Sometimes they concentrate on business strategy(focusing on 'aims', 'objectives' or 'targets'), while inothers greater weight appears to be given to values,philosophy and ethics. A distinction may be drawnbetween those targeted at 'internal' stakeholders ratherthan 'external' ones (Davies and Glaister, 1997;594).In style they can be very vague or very specific and incontent aspirational or functional.

It becomes apparent when appraising the some defini-tions of the mission concept is regarded as multidi-mensional concept by virtually all authors. Further,variations in conceptualization and the specific wordsused notwithstanding, it is possible to identify com-mon elements that underlie most definitions of theconcept. In contemporary literature especially differ-ent mission concept and definition were emphasized.These are (Sidhu, 2003;441):

Company mission is defined as the fundamental pur-pose that sets a firm apart from the other firms of itstype and identifies the scope of its operations in prod-uct and market terms (Pearce and Robinson 1991).Mission is the fundamental purpose and character ofthe organization e.g. to meet the needs of the massmarket in a particular industry (Viljoen 1994).

"Hax and Majluf's definition of the mission is centeredon: detecting the changes to be undertaken in businessscope and core competencies" ( Hax and Majluf,1984). Mission statements offer the opportunity for anyorganization to define clearly the business it is in, stateits overall purpose and indicate its uniqueness or dis-tinctive competence (Davies and Glaister, 1997). Thefirst component of the strategic management process isdefining the mission and major goals of the organiza-tion. The mission sets out why the organization existsand what should be doing (Hill and Jones, 1997).

Management's vision of what the organization seeks todo and to become is commonly termed the organiza-tion's mission. A mission statement establishes the orga-nization's future course and outlines 'who we are, whatwe do and where we're headed' In effect, it sets forth theorganization's intent to stake out a particular businessposition (Thompson and Strickland, 1999). A sense ofmission is important because it generates trust and beliefin the activities of the organization. It gives meaning towork, motivates people and fosters consensus activitiesconducive to the achievement of organizational goals. Amission statement provides a unifying force, a sense ofdirection and a guide to decision- making for all levelsof management (Kemp and Dwyer, 2003;636).

MISSION STATEMENTS OF SOCIALLYRESPONSIBLE FIRMS: A CONTENT ANALYSIS

Refika BAKO LUMarmara University, Turkey

Bige A KUNMarmara University, Turkey

Journal of Global Strategic Management | V. 1 | N. 1 | 2007-June | isma.info | 66-74 | DOI: 10.20460/JGSM.2007118715

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The mission statement should describe the organiza-tion's main activities and the position it wishes toattain in its industry. There should be a statement ofthe key values of the organization, particularly regard-ing attitudes towards stakeholder groups and the ethi-cal agenda. The organization should have the intention

and capability to live up to the mission statement, so,desirably, it should articulate expected behavioralstandards ( Johnson and Scholes, 1999;243).

The component of mission statement is defined in therelated literature as follows.

AUTHORS

Ackoff, 1987;30

COMPONENT OF THE MISSION STATEMENT1.Values2.Beliefs3.Guidelines for the way the organization conducts its business and determines itsrelationships with its stakeholders

Pearce and David 1987;109 Customers: Who are the organization's customerProducts/services: What are the organization's major products or services?Location/markets: Where does the organization compete?Technology: Is technology a primary concern of the organization?Concern for survival, growth and profitability: Is the organization committed toeconomic objectives?Philosophy: What are the basic beliefs, values, aspirations and philosophical pri-orities of the firm?Self - concept: What is the organization's distinctive competence or major compet-itive advantage?Concern for public image: Is the organization responsive to social, community andenvironmental concerns?Concern for employees: Are employees considered to be a valuable asset of theorganization?

David, 1989 1.Purpose2.Philosophy3.Beliefs4.Business principles5.Business definition

Campbell and Yeung, 1991;10 1.Company purpose,2.Strategy3.Shared values4.Behavior standards

Piercy and Morgan, 1994;2 1.The central purpose or philosophy of the organization,2.Business definition or the product - market domain where the organization is tooperate,3.Core values or what do we want people in this organization to be good at?4.Critical success factors or what do we have to be good at to succeed in this mar-ket or industry?

The Ashridge Model(Davies and Glaister,1997;595)

1.Purpose ( 'why the company exists');2.Strategy ('the competitive position and distinctive competence');3.Values (what the company believes in');4.Behavior standards ('the policies and behavior patterns that underpin the distinc-tive competence and value system').

TABLE 1 THE COMPONENT OF THE MISSION STATEMENT

Vern McGinnis (David, 1999) 1.Define what the organization is and what the organization aspires to be,2.Be limited enough to exclude some ventures and broad enough to allow for cre-ative growth,3.Distinguish a given organization from all others,4.Serve as a framework for evaluating both current and prospective activities and5.Be stated in terms sufficiently clear to be widely understood throughout the organ-ization

David, 2001 1.Organization's purpose,2.Products and services,3.Markets,4.Philosophy and basic technology


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Why Have a MissionStatement?Mission Statements offer the opportunity for anyorganization to define clearly the business it is in, stateits overall purpose and indicate its uniqueness or dis-tinctive competence (Davies and Glaister, 1997;594).Many authors have noted the importance of the mis-sion statement for directing and guiding organization-al strategy. The value of mission statements as aninternal marketing tool has also been recognized.Internal stakeholders, managers and other employeesneed a reference point to explain the purpose and phi-losophy of the organization. In this way they can helpensure a consistent corporate direction throughoutlarger organizations (Tolle, 1988; Davies and Glaister,1997;595). Indeed it has been suggested that the valueof mission statements in many organizations is prima-rily as an internal tool, assisting managers to asserttheir leadership and provide motivation for employees(Klemm, Sanderson and Luffman, 1991; Davies andGlaister, 1997;595).

The importance of mission statements to the effectivestrategic management of business organizations iswell documented in the literature. A mission statementis a general expression of the overriding purpose of anorganization that, ideally, is in line with the values andexpectations of major stakeholders. Mission state-ments are often regarded as 'enduring statements ofpurpose that distinguish one business from others'.The mission statement is a declaration of an organiza-tion's "reason for being". It answers the pivotal ques-tion, "What is our business?" A clear mission state-ment is essential for effectively establishing objectivesand formulating strategies (David, 1999). Some theo-rists regard the organization's mission as a 'culturalglue' which enables it to function as a collective unit.This 'cultural glue' consists of strong norms and valuesthat influence the way in which people behave, howthey work together and how they pursue the goals ofthe organization (Campbell and Yeung, 1991; 10). Awell - designed mission statement is essential for for-mulating, implementing and evaluating business strat-egy (David, 2001).

Few mission statements identify profit or any otherfinancial indicator as the sole purpose of the firm.Indeed, most do not even mention profit or sharehold-er return. Employees of organizations or departmentsare usually the mission's most important audience. Forthem, the mission should help to build a commonunderstanding of purpose and commitment to nurture.Profit maximization not only fails to motivate peoplebut also does not differentiate between organizations.

Every corporation wants to maximize profits over thelong term. A good mission statements, by addressingeach principal theme, must communicate why anorganization is special and different. Two studies thatlinked corporate values and mission statements withfinancial performance found that the most successfulfirms mentioned values other than profits. The lesssuccessful firms focused almost entirely on profitabil-ity. In essence, profit is the metaphorical equivalent ofoxygen, food and water that the body requires. Theyare not the point of life, but without them, there is nolife (Dess, Lumpkin and Taylor, 2004).Campbell and Yeung (1991;12) emphasizes that theprocess of developing a mission statement should cre-ate an "emotional bond" and "sense of mission"between the organization and its employees.

Mission statements are presumed to have numerousadvantages for companies. This may explain why theyare so popular despite the lack of agreement abouttheir purpose and content. Four of the most frequentlycited advantages are (Bartkus, Glassman and McAfee,2000; 24):1. To communicate a sense of the firm's direction and

purpose. Some feel that only by having a missionstatement can a firm develop coherent short andlong range goals, objectives and plans. By readinga firm's mission statement, employees, stockhold-ers and customers will know where the firm isheaded.

2. To serve as a control mechanism to keep the firm"on track." Mission statements help keep a firmfrom wandering into unrelated businesses and pur-suing unrelated objectives. They serve as boundarylines for making decisions.

3. To help in making a wide range of day -today deci-sions. When new or non routine decisions need tobe made, mission statements can be used as deci-sion criteria, steering employees in the right direc-tion.

4. To inspire and motivate employees. Mission state-ments give meaning to work and provide a sharedsense of purpose. They help workers realize thebroader purpose of their efforts and encourage themto place that purpose ahead of their own self - inter-ests.

The purpose of mission statement should be to com-municate a description of the firm that allows currentand prospective employees, suppliers, investors andcustomers to determine whether they want to beinvolved with it.Every large firm in the world has developed a website, yet little is known about how these firms use theirsites to communicate business strategy information,


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especially mission statements. This information isimportant because since the 1980s, firms have reliedon mission statements (Vander Weyer,1994; 66) toorganize and communicate strategy-related informa-tion to stakeholders (Campbell,1997;931;Rigby,1998;56). Ireland and Hitt, (1992; 34)assert that the purpose of mission statements is to pub-licly declare the purpose, goals, product /markets andphilosophical views of the organization.

RESEARCH DESIGN,METHODOLOGY ANDFINDINGSObjectives of The ResearchThe main aim of the research is to observe whether themission statements of socially responsible firms havecertain patterns that may differ them from the onesthat are not considered socially responsible. For thatreason, the main aim of the research will be to catego-rize and name the pattern that may emerge within themission statements of socially responsible firms. Thesecond objective of the study is to observe the degreeto which socially responsible firms include values andprinciples in their clearly stated mission.

Limitations of The StudyThree limitations are present and need to be consid-ered when interpreting the results of the research. Firstof all, the information and messages released onlineby organizations are one-sided declarations, and it isnot guaranteed that they are applied and realized in thereal life. This may limits the generalizability of thestudy. Taking into consideration this point, we limitour research with only the mission statement of thesocially responsible firms, rather than including val-ues, principles and social responsibilities and codes ofconducts etc. If the latter important enough to thecompany, they should also be included in their missionstatements. This is to say that by limiting our researchwithin the mission statement, we party overcome withthe practice problem since this limitation allow us toobserve whether stated values, principles and socialresponsibilities important enough to the firms.

Second limitation in this study is about the measure-ment of the information gathered. The "contents" of theonline mission statements provided and the "frequency"of the items are the most important information thisstudy bases on. This type of evaluation may disregardthe weight and importance of the information provided.

Lastly and most importantly, it should be noted that

main limitation of the research comes from the opera-tional definition of the socially responsible firms.Socially responsible firms are defines as the oneswhich listed in the "Business Ethics' 100 BestCorporate Citizens" list, and be listed for at least last 5years. We, as researchers, think being listed once inthe list, should not be enough to be considered associally responsible. Firms should be in the last regu-larly and currently in order to be considered as social-ly responsible.

Validity of The ResearchTo ensure validity of the research, Reliability issemantic validity has been taken into account.Semantic validity exists when people familiar with thetexts examine lists of themes placed in the same cate-gory and agrees that these words have similar mean-ings (Weber, 1990). Since in the content analysisprocess, each researcher independently and individu-ally categorized the items of mission statements, andthe independent sorter examined the themes, madediscussions and the themes have been placed undersame categories with an agreement on a final catego-rization, this research has the semantic validity.

Sampling Method and SizeThe population of this study is composed of sociallyresponsible corporations of the global market. Thesocially responsible firms were selected from the "100Best Corporate Citizens 2004" listing of the BusinessEthics Magazine, USA. (http://www.business-ethics.com/100best.htm). As mentioned earlier, theoperational definition of the socially responsible firmsis the ones, which is listed in the list for last 5 years.Taking the definition into consideration, it can beclaimed that population of the research is only 29 cor-porations (see Table 2 for the complete list). As it canbe clearly seen form the table 1, only 12 out of 29 com-panies had their mission statement clearly stated ontheir web sites. In this research, the 12 companies areconsidered as samples. Intel Corporation has also themission statements of their each business units. Sinceno clearly stated mission statement is available as ageneral mission statement of the company, it is also leftout of the sampling list in the research. The companiesthat are not listed in the sampling list have icons titledas values, principles, social responsibilities, codes ofconduct etc. on their web sites. Although these compo-nents can be considered as a part of the mission state-ments, we, as researchers, prefer not to include them inthe sampling list since one of the objectives of theresearch is to observe whether stated vales and princi-ples are important enough to the socially responsiblefirms by looking at their clearly stated mission state-


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http://www.business-/

ments on their World Wide Web sites.

Each firm's "Home page" was accessed using the webaddress provided by www.google.com. After examin-ing each firm's "Home page" to determine the pres-ence or absence of a mission - type statement or a linkto one, we then clicked on the firm's "About us " ( orsimilar ) page and likewise examined it.

Type of Research andThe Unit of AnalysisThe research is an exploratory qualitative research in itsnature since the research objectives are not investigatedmuch in the literature, and content analysis is chosen asa research method considering the objectives. Contentanalysis is a necessary tool in the study as purpose ofthe research is to explore and observe the patterns thatmay emerge in the mission statements of the sociallyresponsible firms, and to observe the degree to whichsocially responsible firms include values and principlesin their clearly stated mission by collecting data from

their corporate web sites. Secondly, the data collectedfrom the corporate web sited needed to be systematical-ly categorized in order to categorize items of missionstatements and make presumptions on them. Theresearch method that would best fit this process of sys-tematic information collection and analysis of items ofmission statements is content analysis as content analy-sis is a research method that uses a set of procedures tomake valid presumptions from the text (Weber, 1990).Since the central idea of content analysis is to classifymany words in texts into much fewer content cate-gories; it is the most suitable technique for drawing amodel out of rich texts on corporate web sites.

Content analysis technique requires an objective, system-atic and quantitative description of the evident content ofcommunication (Zimmer and Golden, 1988). In order toconduct a thorough content analysis, these rules havebeen cautiously respected and applied in this research.The objectivity is supplied when the researcher and theindependent sorter obtained the same results from thesame data. A systematic analysis is obtained when the

TABLE 2 COMPANIES LISTED IN THE 100 BEST CORPORATE CITIZENS LIST BETWEEN 2000-2004.

LISTEN NO. NAME OF THE COMPAN ES SS ON STATEMENT N THE WEB S TES1 Fannie Mae Not clearly stated2 Procter & Gamble Not clearly stated3 Intel Corporation Sated only for the SBUs4 St. Paul Companies Not clearly stated6 Deere & Company Not clearly stated7 Avon Products, Inc. Clearly stated8 Hewlett-Packard Company Not clearly stated10 Ecolab Inc. Not clearly stated12 IBM Not clearly stated14 Herman Miller, Inc. Not clearly stated17 The Timberland Company Not clearly stated19 Cisco Systems, Inc. Clearly stated22 Southwest Airlines Company Clearly stated24 Motorola, Inc. Not clearly stated27 Cummins Inc. Clearly stated31 Adolph Coors Company Not clearly stated32 Modine Manufacturing Company Clearly stated33 Clorox Company Not clearly stated43 AT&T Not clearly stated44 Pitney Bowes Inc. Clearly stated45 Starbucks Coffee Company Clearly stated48 Merck & Co., Inc. Clearly stated49 Graco Inc. Not clearly stated53 Brady Corporation Clearly stated57 Medtronic, Inc. Clearly stated63 The New York Times Company Clearly stated74 Golden West Financial Corp. Not clearly stated89 Sonoco Clearly stated98 Whirlpool Corporation Not clearly stated


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http://www.google.com./

inclusion or exclusion of categories are done in a consis-tent manner in order to avoid biases of the researchers.In this research, the unit of analysis is corporate websites, which means that the corporate information wascollected from the web sites of companies. In fact, cor-porations can use many communication means to pro-vide information on themselves in our ages; TV, radio,newspapers, periodicals and corporation magazinesare some of those communication mediums. However,as telecommunications technologies develop, theInternet has generated intense interest among commu-nications professionals. Today, there is a wide agree-ment that the Internet and the World Wide Web havebecome important communication media for corpora-tions (Esrock and Leichty, 1998). Corporate web sitescan be accepted as corporate signatures and providesvaluable information that is available worldwide.

STAGES OF THE CONTENTANALYSIS ANDTHE FINDINGSContent Analysis StagesContent analysis method has two main types of com-puter-aided and human-coded content analyses(Weber, 1990). In the research, human-coded contentanalyses is done, as few companies are included in thesampling list, and the research did not look for specif-ic words or terms in texts. Rather than using predeter-mined coding sheet, researchers created a coding sheetfor the analysis, a new list of items observed in themission statements. Afterwards researchers createbroader categories using the list of items. As can be

seen in Table 3, content analysis of the research hasfive stages:

As the first step, each researcher content analyzed themission statements of 12 socially responsible compa-nies individually. At this stage, mission statementscomponents are divided according to theoretical back-ground part of this paper, and items that are relatedwith the business are excluded while value and princi-ple related items included. This is done for the reason:first, companies in the sampling list is from differentbusinesses, that is why differences stem from thatpoint would have any place in the research. Whenbusiness related items were connected to the socialresponsibility approach of the firms, than they wereadded to the coding sheet. Second, according to thesecond objective of the research, values and principlesthat is clearly mentioned in the mission statements hasto be analyzed. At the next step, the researchergrouped the items into mutually exclusive and exhaus-tive categories. On the other hand, the independentsorter grouped the themes into mutually exclusive andexhaustive categories. After this, the researcher andthe independent sorter discussed the reasoning behindtheir classification and agreed on final 5 categoriesand their sub-items. As the last step, two judges wereasked to group the themes under the agreed categories.One of the researchers specialized on strategic man-agement is functioned as an independent sorter for thisresearch. This person had previous experience withthe content analysis technique. One professor of man-agement is asked to be judge for the analysis. Thejudge is familiar with the subject.

Findings of The ContentAnalysisThis study showed that only 41% of the sociallyresponsible companies that are recognized as sociallyresponsible companies for last 5 years had clearly stat-ed mission statements. Although most of the compa-nies in the list had values, principles, social responsi-bilities written in their web pages only 12 companieshad mission statements icons on their corporate webpages. Table 4 presents quantitative summary of theresults of the content analysis. As can be seen at thetable, there were 5 dimensions and 32 sub-items intotal. 5 dimensions that emerge in the content analysisare expected considering the related literature. What iseye catching with the result is the fact that not manyitems occurred more than once in each dimension, andalthough all the companies are listed in social respon-sibility index for the last five years, their missionstatements do not really indicate and prove that theyare very much concern about social responsibility con-

Stage 1CONTENT ANALYSIS OF CORPORATE WEBSITES IS DONE. THE THEMES ARE SHAPED.

Stage 2THE RESEARCHER GROUPS THE THEMES INTOCATEGORIES.

Stage 3ONE INDEPENDENT SORTER GROUPS THETHEMES INTO CATEGORIES.

Stage 4THE RESEARCHER AND THE INDEPENDENT SORTERDISCUSS THE CATEGORIES. FINAL CATEGORIESAND DIMENSIONS ARE SHAPED.

Stage 5ONE JUDGE GROUPS THE THEMES UNDER THEFINAL CATEGORIES.

TABLE 3 THE STAGES OF CONTENT ANALYSIS


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sidering social responsibility literature and items thatoccur in their mission statement (please see table 4).One may claim that they have written concerns, valuesand principles related with their social responsibilitiesseparately in their web sides. Although figuring outhow rich is their values, principles and social respon-sibility concerns compare to the related literature isanother research question to be explored, just becausethey are not stated in their mission statement it causesdoubt about sincerity of their concern, even thoughunder the assumption that their values, principles andsocial responsibility concerns are rich in their sub-stance.

RESULTS ANDDISCUSSIONSAs table 5 clearly shows, most of the items occurredonce or some of them twice or some of them threetimes in each dimensions. This basically indicates thatwe cannot really observe certain patterns in the mis-sion statements of socially responsible firms, which isrelated social responsibility concern of the firms. Wecan also hardly say that even the dimensions that areindicated in this research did not really emerge. This isto say that no general conclusion can be made out ofthese results, and every company should be consideredindividually. The only thing which is clear here is thefact that stated values, approaches and concerns relat-ed with social responsibility in the mission statementsof the "accepted" socially responsible firms are not

rich in their substance.

Considering operational definition of mission in thisresearch, it should be noted here that it is contrary andsurprising to explore that socially responsible, at least"socially responsible accepted", companies do notemphasize values, principles and philosophy related totheir social responsibility approaches as much asexpected. Although it is observed that social responsi-bility has become one of the main ingredients ofstrategic architecture of transnational companies(Bako lu, 2003), it still need time until it become realsubstance for sustainable competitive advantage ofcompanies as it is evident in the content analysisresearch of this paper. As some recent studies stressthat there is still long time until social responsibilitybecome a sustainable development tool in reality andwould be a sound ground for social policy of govern-ments, and companies in the literature (Frankental,2001; Bako lu and Kaya, 2003; Bako lu, 2004).

Lastly, it should be stressed that the reason why the"accepted socially responsible firms' mission state-ments are so poor in their substance related with socialresponsibility issues, is related to the origins of thecompanies that are mainly from the USA, as accord-ing to the corporate governance approach of The USAoriginated companies, governance mechanism expect-ed to present shareholder's collective interest (Hitt,Ireland and Hoskisson, 2005; 306, Ülgen and Mirze,2004; 424). In our research, only one company stress-

TABLE 4 SUMMARY OF THE RESULTS OF THE CONTENT ANALYSIS

1 Customer Customer satisfaction (3 times) 8

2 Employee Advancement opportunities (4 times)Safety (twice)Equal opportunity for learning (twice) 8Equal opportunity personal growth (twice)Respect, care and concern (twice)Respect for diversity (twice)

3 Shareholder Shareholder return (3 times) 5

4 Community/ Society Integrity (twice) 8Honesty (twice)Good corporate citizenship (3 times)

5 Environment None 3

TOTAL 32

DIMENSIONS ITEMS OCCURRED MORE THAN NUMBER OF ITEMSONE INTHE MISSION STATEMENTS IN EACH DIMENSION


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es stakeholder interest although shareholder wealthwere mostly stresses in the mission statements. On oneside this verifies the related literature, on the other thisshould be taken as a sign that similar researches to alarger extent. For example, originally German,Japanese, Chinese, Russian etc. companies should beincluded in the sample for the new research.

Customer Safety 1Security 1Customer needs 1Customer respect and loyaltyRespect, care and concern for customers 1Customer satisfaction 3Lifelong customer relationship 1

Employee Meaningful work for employees 1Advancement opportunities for employees 4Safety/ safe workplace 2Equal opportunity for learning 2Equal opportunity personal growth 2Respect, care and concern for employees 2Employee satisfaction 1Respect for diversity 2

Shareholders Investor's return 1Wealth for all stakeholders 1Shareholder return 4Fair profit 1Work environment with respect and dignity 1

Community / Society Quality of life 1Integrity 2Honesty 2Commitment to excellence 1Contribute positively to our communities 1Socially responsible 1Diversity 1Good corporate citizenship 3

Environment Environmental stewardship 1Contribute positively to our environment 1Cleaner, healthier, safer environment 1

TABLE 5 ITEMS EMERGED IN THE MISSION STATEMENTS OFSOCIALLY RESPONSIBLE COMPANIES

DIMENSIONS ITEMS FREQUENCY


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